Wipro and Warburg amplify talks for Harman India arm

Economic Times

2 days ago

Mumbai: Global private equity firm Warburg Pincus and Wipro Technologies are in advanced negotiations to acquire the digital transformation solutions (DTS) business of US-headquartered audio and connected technologies firm Harman in India, said people privy to the discussions.
The deal is expected to value the business at about $500 million (Rs 4,375 crore), they told ET on condition of anonymity. Deutsche Bank is advising Harman, a wholly owned subsidiary of South Korean conglomerate Samsung Electronics, on the proposed transaction.
A Warburg Pincus spokesperson declined to comment, while queries emailed to Harman and Wipro Technologies did not elicit a response till press time.
Harman—known for audio brands JBL, Harman Kardon and Infinity—designs and engineers connected products and solutions for automakers and consumers worldwide. Offerings include connected car systems, audio-visual products and enterprise automation solutions. The company began operations in India in 2008 and currently employs more than 9,000 people across eight cities.
It has been working with Bengaluru-based Wipro Technologies through a strategic engineering collaboration since the year it entered the country, including the Harman India Development Centre at Wipro's facilities in Bengaluru and Chennai.
Samsung Electronics acquired Harman International Industries in 2017 for about $8 billion. While the automotive segment remains Harman's primary revenue driver, the company's DTS unit in India has a strong presence across healthcare, communications and industrial applications. It supports life sciences and medtech companies in accelerating clinical trials, modernising platforms and ensuring regulatory compliance, and helps industrial and consumer businesses with real-time factory insights, connected ecosystems and enterprise systems. Wipro Technologies has been on an acquisition spree over the past few years. In 2024, it took over Aggne Global, a US-based insurance tech firm, to strengthen its presence in the insurance sector. It also bought out US-based IT consulting firm Applied Value Technologies to enhance its enterprise application development and support services. Besides, it purchased a 27% stake in SDVerse, an automotive software marketplace, last year. In 2022, Wipro Technologies acquired Rizing Intermediate Holdings, Inc. for $540 million to bolster its SAP consulting capabilities. Its largest acquisition was Capco, a global management and technology consultancy, for $1.45 billion in 2021. Warburg Pincus has been an active investor in digital solutions and outsourcing. It previously owned Encora, a digital engineering services provider for outsourced software product development, which it sold to Advent International in 2021.
In India, the New York-headquartered private equity firm backs Perfios, a business-to-business software-as-a-service provider for the banking, financial services and insurance sector, operating in 18 countries.